Yum China Holdings, Inc. reported unaudited financial results for the first quarter ended March 31, 2025, achieving record highs in revenue, net income, and diluted earnings per share. Total revenues grew 1% year-over-year, or 2% excluding foreign exchange impact, reaching $2,981 million.
Operating profit increased 7% year-over-year, or 8% excluding foreign exchange impact, to $399 million, with the operating profit margin expanding by 80 basis points to 13.4%. Restaurant margin also expanded by 100 basis points year-over-year to 18.6%, driven by improved cost of sales and optimized occupancy costs.
Same-store sales index advanced to 100% of the prior year level for both KFC and Pizza Hut, marking the first time since Q1 2024. Same-store transactions grew for the ninth consecutive quarter, with KFC seeing a 4% increase and Pizza Hut a substantial 17% increase.
KFC's system sales grew 3% excluding foreign exchange impact, and its restaurant margin expanded to 19.8%. Pizza Hut's system sales increased 2% excluding foreign exchange impact, with its restaurant margins improving significantly by 190 basis points to 14.4%.
The company opened 247 net new stores in Q1 2025 and remains on track to open 1,600 to 1,800 net new stores for the full year 2025. KCOFFEE Cafes reached 1,000 locations nationwide in Q1, with an updated target of 1,500 locations by the end of 2025.
Yum China reiterated its commitment to return $3 billion to shareholders in 2025-2026, in addition to the $1.5 billion returned in 2024. In Q1 2025, the company returned $262 million, comprising $172 million in share repurchases and $90 million in quarterly cash dividends, maintaining a healthy net cash position of $2.8 billion.
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